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The Artificial Intelligence Basic Act is promulgated and enters into force
The Artificial Intelligence Basic Act is promulgated and enters into force
Tseng, Keng-Ying/Cheng, Kai-Yao
On January 14, 2026, the Artificial Intelligence Basic Act (人工智慧基本法, the "AI Basic Act") was officially promulgated and entered into force. The AI Basic Act aims to: (1) build a smart nation; (2) promote human-centric AI research and development ("R&D") and industry development; (3) safeguard fundamental rights; and (4) ensure digital equality and sustainable social development. As the statutory framework for regulating and promoting AI in Taiwan, the AI Basic Act sets key standards and guiding principles. Key provisions of the AI Basic Act are summarized below:
1. Competent Authority and Authority with Jurisdiction
The National Science and Technology Council (國家科學及技術委員會) serves as the central competent authority, while government of the special municipality and county/city governments act as local competent authorities. Sector-specific matters remain under the jurisdiction of their respective regulatory bodies. The Executive Yuan (Taiwan's Cabinet) will also establish a National AI Strategy Special Committee (國家人工智慧戰略特別委員會) to coordinate national AI policy, supervise implementation, and formulate the National AI Development Program (國家人工智慧發展綱領).
2. Definition of AI and AI Principles
The AI Basic Act defines AI by emphasizing autonomous capabilities to distinguish it from traditional software systems. It requires the government to balance innovation with potential risks when promoting AI. The Act sets out seven implementation principles: sustainability and well-being; human autonomy; privacy protection and data governance; cybersecurity and safety; transparency and explainability; fairness and non-discrimination; and accountability.
3. Risk Mitigation and Accountability
The government must prevent AI applications from infringing on individual rights and prioritize the best interests of minors when regulating AI products. In the future, all "high-risk" AI products and systems (as classified by the competent authority) must carry clear warnings. The government will also regulate liability and accountability for high-risk AI applications and establish necessary remedies, compensation, or insurance mechanisms.
4. AI Data Governance
The government will enhance data governance by: (1) establishing mechanisms for data openness, sharing, and reuse to improve the availability and quality of AI training data; and (2) preventing unnecessary personal data collection, process or use, while incorporating data protection principles into AI system design.
5. Encouraging AI Development
The government will actively promote AI R&D, infrastructure, and public-private/international cooperation. Specific measures include:
1. Enhancing AI talent cultivation and AI literacy.
2. Implementing development policies, fostering technology exchange and establishing AI infrastructure.
3. Allocating sufficient budgets, R&D subsidies, and fiscal incentives.
4. Establishing innovative experimental environments for AI R&D and application.
5. Promoting international and public-private collaboration.
6. Safeguarding Human Rights
The AI Basic Act advocates for human-centric AI and digital equality. Human rights protections, including the risk mitigation framework mentioned above, are implemented through the following measures:
1. Preventing rights infringements and ensuring proper regulation of high-risk AI.
2. Safeguarding labor rights, addressing skill gaps, and assisting workers displaced by AI.
3. Mandating the Ministry of Digital Affairs (數位發展部) to promote risk classification frameworks and assist sectoral regulators in formulating standards.
4. Defining liability and accountability for high-risk AI, including applicable remedies, compensation, and insurance mechanisms.
The AI Basic Act represents landmark, principle-based legislation. Following promulgation, competent authorities are expected to review existing laws, issue interpretive guidance, and develop implementing regulations, including definitions of high-risk AI and related labeling requirements. Our Digital Industry, Communications, and Personal Data Protection team is closely monitoring these developments. Should your company have any questions regarding the relevant regulations, please contact our team.